VOV.VN - Taiwanese firm GIANT, the world's largest bicycle manufacturer, has unveiled a plan to invest a total of US$50 million in the first phase of a project in order to build its first factory in Vietnam
When operational in 2023, the factory is anticipated to recruit over 500 local employees (Photo: baodautu.vn)
Moving forward, the project is anticipated to be located in the southern province of Binh Duong, due to the area being considered to possess a fairly complete supply chain of bicycle accessories in the country.
GIANT's upcoming site will be built on an area of approximately 10 hectares, with the majority of its products set to be exported to two key markets, including the United States and Europe.
According to a representative from the Taiwanese company, with a population of 100 million people, the majority of which are young people, the nation has great potential within its domestic market.
Furthermore, GIANT’s products which are manufactured in the country are predicted to be able to enjoy tariff preferences when being supplied to the ASEAN market of 600 million people.
When the site comes into operation ahead in 2023, the factory is set to recruit over 500 local employees and will serve to boost the enterprise’s global production capacity to reach approximately US$8 million products annually.
GIANT’s decision to invest in the Vietnamese market amid the complicated nature of the COVID-19 pandemic show that financiers greatly appreciate the nation as a good investment destination.
Several Taiwanese firms over recent years, including Foxconn, Luxshare, Winston, and Pegatron, have increased their investment in large-scale projects in the country.
According to details given by the Taiwanese Ministry of Economic Affairs, Vietnam is one of five countries and territories that businesses from Taiwan (China) injected huge money into last year, behind Hungary, the British Virgin Islands, Hong Kong (China), and the United States.
In terms of the ASEAN region as a whole, Taiwanese investment into the Vietnamese market cumulatively accounts for roughly 55%, far surpassing Indonesia which secured second place with approximately 23%.
According to the Taiwanese Ministry of Economic Affairs, in the event that the Vietnamese Government considers easing travel restrictions and allowing Taiwanese investors to conduct surveys, new investment projects will increase during the remainder of the year.
During the opening eight months of the year Taiwan registered to invest over US$1.1 billion in Vietnam, ranking sixth among countries and territories investing in the Vietnamese market during the reviewed period, according to the Foreign Investment Agency.